This character is a Other Symbol and is commonly used, that is, in no specific script.
The glyph is not a composition. It has no designated width in East Asian texts. In bidirectional text it acts as Other Neutral. When changing direction it is not mirrored. The word that U+262E forms with similar adjacent characters prevents a line break inside it.
The CLDR project calls this character “peace symbol” for use in screen reading software. It assigns these additional labels, e.g. for search in emoji pickers: healing, peace, peaceful, symbol.
This character is designated as an emoji. It will be rendered as monochrome character on conforming platforms. To enable colorful emoji display, you can combine it with Variation Selector-16: ☮️ See the Emojipedia for more details on this character’s emoji properties.
The Wikipedia has the following information about this codepoint:
A number of peace symbols have been used many ways in various cultures and contexts. The dove and olive branch was used symbolically by early Christians and then eventually became a secular peace symbol, popularized by a Dove lithograph by Pablo Picasso after World War II. In the 1950s, the "peace sign", as it is known today (also known as "peace and love"), was designed by Gerald Holtom as the logo for the British Campaign for Nuclear Disarmament (CND), a group at the forefront of the peace movement in the UK, and adopted by anti-war and counterculture activists in the US and elsewhere. The symbol is a superposition of the semaphore signals for the letters "N" and "D", taken to stand for "nuclear disarmament", while simultaneously acting as a reference to Goya's The Third of May 1808 (1814) (aka "Peasant Before the Firing Squad").
The V hand signal and the peace flag also became international peace symbols.